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Latent defects insurance explained

Latent defects insurance (LDI) is another name for structural warranty insurance providing cover for the cost of rectifying or repairing structural damage caused by a fault in the design, construction, or materials of a new build, conversion, or completed build development project. Most policies, including Build-Zone’s, are for 10-12 years after completion of a build.


Latent Defects Insurance - LDI Insurance
Latent Defects Insurance - LDI Insurance

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This type of insurance provides a cost-effective and much more efficient alternative to collateral warranties which can only be actioned if the Professional Indemnity policy (which they are usually attached to), is still valid and all parties are still trading. With a collateral warranty, you would need to prove negligence on the part of the construction team, which can be very difficult. However, latent defects insurance covers you even if parties cease trading – which is all too common, plus there’s no need to prove negligence.

“Our latent defects insurance has been designed for new builds and conversions of commercial and mixed-use developments, of any size. These include student accommodation, care homes, offices as well as industrial units and retail units.”

All of Build-Zone’s latent defects and structural warranties insurances are underwritten by A-Rated global insurers and each case is subject to full technical review by Build-Zone Survey Services Limited, with the aim of minimising any defects right from the design stage. We don’t just sell on minimums or on price – we are professional brokers where quality and service matter.


Latent defects insurance will cover you for the cost of reinstatement and repairs to your damaged development or property and pay for works to prevent further damage caused by a defect up to the total sum insured which is typically the full reinstatement value.


Build-Zone offers an extensive range of structural warranties and latent defects insurance products to cover all types of projects and developments throughout the UK and the Republic of Ireland – including Residential, Commercial, Mixed-use, Permitted Developments and Regeneration schemes. Whatever your project, we can work with you and your team to get you the cover that you need.


Our team is experienced in underwriting structural warranties and latent defects insurance for all types and sizes of developments; whatever the project, Build-Zone can help provide its clients with the policy they need.


Our Latent Defect and Structural Warranty products include:


  • New Home Lender Approved structural warranty

  • Commercial Warranty/ Inherent Latent Defects Insurance for Commercial and Major projects

  • Mixed-use Development Properties

  • Social Housing

  • Completed Housing

  • Self-Build and Custom Build (through our sister brand Self-Build Zone).



www.build-zone.com

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